Subchapter I.—Assistance for Local Educational Agencies in Areas Affected by Federal Activity

§ 236. Congressional declaration of policy.

In recognition of the responsibility of the United States for the impact which certain Federal activities have on the local
educational agencies in the areas in which such activities are carried on, the Congress declares it to be the policy of the
United States to provide financial assistance (as set forth in this subchapter) for those local educational agencies upon
which the United States has placed financial burdens by reason of the fact that—

(1) the revenues available to such agencies from local sources have been reduced as the result of the acquisition of real
property by the United States; or

(2) such agencies provide education for children residing on Federal property; or

(3) such agencies provide education for children whose parents are employed on Federal property; or

(4) there has been a sudden and substantial increase in school attendance as the result of Federal activities.

§ 237. Federal acquisition of property within school district as financial burden; Federal contributions; property excluded;
effect of school district consolidations.

(a) Where the Commissioner, after consultation with any local educational agency and with the appropriate State educational
agency, determines for any fiscal year ending prior to July 1, 1973—

(1) that the United States owns Federal property in the school district of such local educational agency, and that such property
(A) has been acquired by the United States since 1938, (B) was not acquired by exchange for other Federal property in the
school district which the United States owned before 1939, and (C) had an assessed value (determined as of the time or times
when so acquired) aggregating 10 per centum or more of the assessed value of all real property in the school district (similarly
determined as of the time or times when such Federal property was so acquired); and

(2) that such acquisition has placed a substantial and continuing financial burden on such agency; and

(3) that such agency is not being substantially compensated for the loss in revenue resulting from such acquisition by increases
in revenue accruing to the agency from the carrying on of Federal activities with respect to the property so acquired,

then the local educational agency shall be entitled to receive for such fiscal year such amount as, in the judgment of the
Commissioner, is equal to the continuing responsibility for the additional financial burden with respect to current expenditures
placed on such agency by such acquisition of property. Such amount shall not exceed the amount which, in the judgment of the
Commissioner, such agency would have derived in such year, and would have had available for current expenditures, from the
property acquired by the United States (such amount to be determined without regard to any improvements or other changes made
in or on such property since such acquisition).

(b) For the purposes of this section any real property with respect to which payments are being made under section 831L of
Title 16 shall not be regarded as Federal property.

§ 238. Payments to local school agencies.

(a) Children of persons who reside and work on Federal property; parent in uniformed services.

For the purpose of computing the amount to which a local educational agency is entitled under this section for any fiscal
year, the Commissioner shall determine the number of children who were in average daily attendance at the schools of such
agency, and for whom such agency provided free public education, during such fiscal year, and who, while in attendance at
such schools, resided on Federal property and (1) did so with a parent employed on Federal property situated in whole or in
part in the same State as the school district of such agency or situated within reasonable commuting distance from the school
district of such agency, or (2) had a parent who was on active duty in the uniformed services (as defined in section 102 of
the Career Compensation Act of 1949).

(b) Children of persons who reside or work on Federal property, who are on active duty in the uniformed service, or who are refugees.

For the purpose of computing the amount to which a local educational agency is entitled under this section for any fiscal
year ending prior to July 1, 1973, the Commissioner shall also deter-

mine the number of children (other than children to whom subsection (a) of this section applies) who were in average daily
attendance at the schools of a local educational agency, and for whom such agency provided free public education, during such
fiscal year and who, while in attendance at such schools, either (1) resided on Federal property, or (2) resided with a parent
employed on Federal property situated in whole or in part in the same State as such agency or situated within reasonable commuting
distance from the school district of such agency, or (3) had a parent who was on active duty in the uniformed services (as
defined in section 102 of the Career Compensation Act of 1949). In the case of fiscal years ending prior to July 1, 1973,
the Commissioner shall also determine the number of children (other than children to whom subsection (a) of this section or
any other provision of this subsection applies) who were in average daily attendance at the schools of a local educational
agency and for whom such agency provided free public education, during such fiscal year, and who, while in attendance at such
schools resided with a parent who was, at any time during the three-year period immediately preceding the fiscal year for
which the determination is made, a refugee who meets the requirements of section 2601(b)(3) (A) and (B) of Title 22.

(c) Computation of amount of entitlement.

(1) The amount to which a local educational agency is entitled under this section for any fiscal year shall be an amount equal
to (A) the local contribution rate (determined under subsection (d) of this section) multiplied by (B) the sum of the number
of children determined under subsection (a) and one-half of the number determined under subsection (b) of this section.

(2) No local educational agency shall be entitled to receive any payment for a fiscal year with respect to a number of children
determined under subsection (a) or the first sentence of subsection (b) of this section, as the case may be, unless the number
of children who were in average daily attendance during such year and to whom such subsection or such sentence applies—

(A) is ten or more; and

(B) amounts to, whichever is the lesser, four hundred such children, or a number of such children equal to 3 per centum or
more of the total number of children who were in average daily attendance during such year and for whom such agency provided
free public education, except that such 3 per centum requirement need not be met by such agency for any period of two fiscal
years which follows a fiscal year during which such agency met such requirement and was entitled to payment under the provisions
of this section, but the payment, under the provisions of this section to such agency for the second fiscal year of any such
two-year period during which such requirement is not met, shall be reduced by 50 per centum of the amount thereof.

For the purposes of this paragraph, a local educational agency may count as children determined under the first sentence of
subsection (b) of this section any number of children determined under subsection (a) of this section. Notwithstanding the
provisions of clause (B) of this paragraph, the Commissioner may waive the 3 per centum condition of entitlement contained
in such clause whenever, in his judgment, exceptional circumstances exist which would make the application of such condition
inequitable and would defeat the purposes of this subchapter.

(3) No local educational agency shall be entitled to receive any payment for a fiscal year with respect to a number of children
determined under the second sentence of subsection (b) of this section unless the number of children who were in average daily
attendance to whom such sentence applies amounts to 20 per centum or more of the number of children who were in average daily
attendance during such year and for whom such agency provided free public education, but in determining the number of such
children under such second sentence no child shall be counted with respect to whose education a payment was made under section
2601(b)(4) of Title 22.

(4) If—

(A) the amount computed under paragraph (1) of this subsection for a local educational agency for any fiscal year, together
with the funds available to such agency from State, local, and other Federal sources (including funds available under section
239 of this title, but excluding funds available under subchapter II of this chapter) is, in the judgment of the Commissioner,
less than the amount necessary to enable such agency to provide a level of education equivalent to that maintained in the
school districts of the State which, in the judgment of the Commissioner, are generally comparable to the school district
of such agency;

(B) such agency is, in the judgment of the Commissioner, making a reasonable tax effort and exercising due diligence in availing
itself of State and other financial assistance;

(C) not less than 50 per centum of the total number of children who were in average daily attendance at the schools of such
agency, and for whom such agency provided free public education, during such fiscal year resided on Federal property; and

(D) the eligibility of such agency under State law for State aid with respect to the free public education of children residing
on Federal property, and the amount of such aid, is determined on a basis no less favorable to such agency than the basis
used in determining the eligibility of local educational agencies for State aid, and the amount thereof, with respect to the
free public education of other children in the State,

the Commissioner may increase the amount computed under paragraph (1) of this subsection to the extent necessary to enable
such agency to provide a level of education equivalent to that maintained in such comparable school districts; except that
this paragraph shall in no case operate to increase the amount computed for any fiscal year under paragraph (1) of this subsection
for a local educational agency above the amount determined by the Commissioner to be the cost per pupil of providing a level
of education equivalent to that maintained in such comparable school districts, multiplied by the number of children who were
in average daily attendance at the schools of such agency, and for whom such agency provided free public education, during
such year and who resided on Federal property during such year, minus the amount of State aid which the Commissioner determines
to be available with respect to such children for the year for which the computation is being made.

(5) The determinations whether a local educational agency has met the requirements for eligibility under paragraph (2)(B)
and (4)(C) of this subsection for any fiscal year shall be made on the basis of estimates by the Commissioner made prior to
the close of such year, except that an underestimate made by the Commissioner pur-

suant to the foregoing provisions of this sentence shall not operate to deprive an agency of its entitlement to any payments
under this section to which it would be entitled had the estimate been accurate.

(d) Local contribution rate; special determination for territories.

The local contribution rate for a local educational agency (other than a local educational agency in Puerto Rico, Wake Island,
Guam, American Samoa, or the Virgin Islands, or in a State in which a substantial proportion of the land is in unorganized
territory for which a State agency is the local educational agency, or in a State in which there is only one local educational
agency) for any fiscal year shall be computed by the Commissioner of Education, after consultation with the State educational
agency and the local educational agency, in the following manner:

(1) he shall determine which school districts within the State are in his judgment generally comparable to the school districts
of the agency for which the computation is being made; and

(2) he shall then divide (A) the aggregate current expenditures, during the second fiscal year preceding the fiscal year for
which he is making the computation, which the local educational agencies of such comparable school districts made from revenues
derived from local sources, by (B) the aggregate number of children in average daily attendance to whom such agencies provided
free public education during such second preceding fiscal year.

The local contribution rate shall be an amount equal to the quotient obtained under clause (2) of this subsection. If, in
the judgment of the Commissioner, the current expenditures in those school districts which he has selected under clause (1)
of this subsection are not reasonably comparable because of unusual geographical factors which affect the current expenditures
necessary to maintain, in the school district of the local educational agency for which the computation is being made, a level
of education equivalent to that maintained in such other districts, the Commissioner may increase the local contribution rate
for such agency by such amount as he determines will compensate such agency for the increase in current expenditures necessitated
by such unusual geographical factors. In no event shall the local contribution rate for any local educational agency in any
State (other than Puerto Rico, Wake Island, Guam, American Samoa, or the Virgin Islands) for any fiscal year be less than
(i) 50 per centum of the average per pupil expenditure in such State or (ii) 50 per centum of the average per pupil expenditure
in the United States (which for the purposes of this sentence and the next sentence means the fifty States and the District
of Columbia), but not to exceed the average per pupil expenditure in the State: Provided, That if, for the fiscal year ending
June 30, 1959, the application of clause (ii) of this sentence results in a lower local contribution rate than resulted from
the application of such clause during the fiscal year ending June 30, 1958, as such clause was then in effect, then such clause,
as in effect during the fiscal year ending June 30, 1958, shall be in effect during the fiscal year ending June 30, 1959.
For the purposes of the preceding sentence the "average per pupil expenditure" in a State, or in the United States, shall
be the aggregate current expenditures, during the second fiscal year preceding the fiscal year for which the computation is
made, of all local educational agencies in the State, or in the United States, as the case may be, plus any direct current
expenditures by the States for the operation of such agencies (without regard to the sources of funds from which either of
such expenditures are made), divided by the aggregate number of children in average daily attendance to whom such agencies
provided free public education during such preceding fiscal year. The local contribution rate for any local educational agency
in Puerto Rico, Wake Island, Guam, American Samoa, or the Virgin Islands, or in any State in which a substantial proportion
of the land is in unorganized territory for which a State agency is the local educational agency, or in any State in which
there is only one local educational agency, shall be determined for any fiscal year by the Commissioner in accordance with
policies and principles which will, in his judgment, best effectuate the purposes of this subchapter and most nearly approximate
the policies and principles provided herein for determining local contribution rates in other States.

(e) Adjustment for certain decreases in Federal activities.

Whenever the Commissioner determines that—

(1) a local educational agency has made preparations to provide during a fiscal year free public education for a certain number
of children to whom subsection (a) or (b) of this section applies;

(2) such preparations were in his judgment reasonable in the light of the information available to such agency at the time
such preparations were made; and

(3) such number has been substantially reduced by reason of a decrease in or cessation of Federal activities or by reason
of a failure of any of such activities to occur,

§ 239. Sudden and substantial increases in attendance.

(1) that, as a direct result of activities of the United States (carried on either directly or through a contractor), an increase
in the number of children in average daily attendance at the schools of any local educational agency has occurred in such
fiscal year, which increase so resulting from activities of the United States is equal to at least 5 per centum of the difference
between the number of children in average daily attendance at the schools of such agency during the preceding fiscal year
and the number of such children whose attendance during such year resulted from activities of the United States (including
children who resided on Federal property or with a parent employed on Federal property); and

(2) that such activities of the United States have placed on such agency a substantial and continuing financial burden; and

(3) that such agency is making a reasonable tax effort and is exercising due diligence in availing itself of State and other
financial assistance but is unable to secure sufficient funds to meet the increased educational costs involved,

then such agency shall be entitled to receive for such fiscal year an amount equal to the product of—

(A) the number of children which the Commissioner determines to be the increase, so resulting from activities of the United
States, in such year in average daily attendance; and

(B) the amount which the Commissioner determines to be the current expenditures per child necessary to provide free public
education to such additional children during such year, minus the amount which the Commissioner determines to be available
from State, local, and Federal sources for such purpose (not counting as available for such purpose either payments under
this chapter or funds from local sources necessary to provide free public education to other children).

For the next fiscal year (except where the determination under the preceding sentence has been made with respect to the fiscal
year ending June 30, 1973) such agency shall be entitled to receive 50 per centum of such product reduced by the amount of
such product which is attributable to children with respect to whom such agency is, or upon application would be, entitled
to receive any payment under section 238 of this title for such fiscal year, but not to exceed for such year the amount which
the Commissioner determines to be necessary to enable such agency, with the State, local, and other Federal funds (exclusive
of funds available under subchapter II of this chapter) available to it for such purpose, to provide a level of education
equivalent to that maintained in the school districts in such State which in his judgment are generally comparable to the
school district of such agency. The determinations whether an increase has occurred for purposes of clause (1) of this subsection
and whether such increase meets the 5 per centum requirement contained in such clause, for any fiscal year, shall be made
on the basis of estimates by the Commissioner made prior to the close of such year, except that an underestimate made by the
Commissioner pursuant to the foregoing provisions of this sentence shall not operate to deprive an agency of its entitlement
to any payments under this section to which it would be entitled had the estimate been accurate. The determination under clause
(B) of this subsection shall be made by the Commissioner after considering the current expenditures per child in providing
free public education in those school districts in the State which, in the judgment of the Commissioner, are generally comparable
to the school district of the local educational agency for which the computation is being made.

(b) Omitted.

(c) Counting of certain children in determination of increases.

In determining under subsection (a) of this section whether there has been an increase in attendance in any fiscal year directly
resulting from activities of the United States and the number of children with respect to whom payment is to be made for any
fiscal year, the Commissioner shall not count—

(A) children with respect to whom a local educational agency is, or upon application would be, entitled to receive any payment
under section 238 of this title for such fiscal year: Provided, That the Commissioner shall count for such purposes as an
increase directly resulting from activities of the United States, an increase in the number of children who reside on Federal
property or reside with a parent employed on Federal property, if the local educational agency files, in accordance with regulations
of the Commissioner, its election that such increase be counted for such purposes instead of for the purposes of section 238
of this title; and

(B) children whose attendance is attributable to activities of the United States carried on in connection with real property
which has been excluded from the definition of Federal property by the last sentence of paragraph (1) of section 244 of this
title.

(d) Adjustment ,for decreases in Federal activities.

Whenever the Commissioner determines that—

(1) a local educational agency has made preparations to provide during a fiscal year free public education for a certain number
of children to whom subsection (a) of this section applies;

(2) such preparations were in his judgment reasonable in the light of the information available to such agency at the time
such preparations were made; and

(3) such number has been substantially reduced by reason of a decrease in or cessation of Federal activities or by reason
of a failure of any of such activities to occur,

the amount to which such agency is otherwise entitled under this section for such year shall be increased to the amount to
which, in the judgment of the Commissioner, such agency would have been entitled but for such decrease in or cessation of
Federal activities or the failure of such activities to occur, minus any reduction in current expenditures for such year which
the Commissioner determines that such agency has effected, or reasonably should have effected, by reason of such decrease
in or cessation of Federal activities or the failure of such activities to occur.

§ 240. Method of making payments.

(a) Application.

No local educational agency shall be entitled to any payment under sections 237, 238, or 239 of this title for any fiscal
year except upon application therefor, submitted through the State educational agency and filed in accordance with regulations
of the Commissioner, which application gives adequate assurance that the local educational agency will submit such reports
as the Commissioner may reasonably require to determine the amount to which such agency is entitled under this subchapter.

(b) Payment.

The Commissioner shall, subject to the provisions of subsection (c) of this section, from time to time pay to each local educational
agency, in advance or otherwise, the amount which he estimates such agency is entitled to receive under this subchapter. Such
estimates shall take into account the extent (if any) to which any previous estimate of the amount to be paid such agency
under this subchapter (whether or not in the same fiscal year) was greater or less than the amount which should have been
paid to it. Such payments shall be made through the disbursing facilities of the Department of the Treasury and prior to audit
or settlement by the General Accounting Office. Sums appropriated pursuant to this subchapter for any fiscal year shall remain
available, for obligation and payments with respect to amounts due local educational agencies under this subchapter for such
year, until the close of the following fiscal year.

(c) Adjustments where necessitated by appropriations.

(1) If the funds appropriated for any fiscal year for making payments under this subchapter are not sufficient to pay in full
the total amounts which the Commissioner estimates all local educational agencies will be entitled to receive under this subchapter
for such year, the Commissioner (A) shall determine the part of the entitlement of each such local educational agency which
is attributable to determinations under subsections (a) and (b) of section 238 of this title of the number of children who
resided on, or resided with a parent employed on, property which is part of a low-rent housing project assisted under the
United States Housing Act of 1937, section 516 of the Housing Act of 1949, or part B of title III of the Economic Opportunity
Act of 1964, and (B) except as otherwise provided in paragraph (3), shall allocate such funds, other than so much thereof
as he estimates may be required for carrying out the provisions of section 241 of this title, among sections 237, 238 and
239(a) of this title in the proportion that the amount he estimates to be required under each such section bears to the total
estimated to be required under all such sections, except that he shall not take into consideration any part of any entitlement
determined under clause (A). The amount so allocated to any such section shall be available for payment of a percentage of
the amount to which each local educational agency is entitled under such section. Such percentage shall be equal to the percentage
which the amount allocated to a section under the second sentence of this paragraph is of the amount to which all such agencies
are entitled under such section. For the purposes of this paragraph, in determining the amount to which each local educational
agency is entitled under section 238 of this title he shall include an increases under paragraph (4) of subsection (c) hereof;
but he shall exclude any part of any entitlement determined under clause (A) of this paragraph.

(2) If the funds available for allocation under paragraph (1) for any fiscal year exceed the amount necessary to fully satisfy
entitlements for which allocations will be made under such paragraph, that excess shall be available for payment of a percentage
of that part of the entitlement of each local educational agency determined under clause (A) of paragraph (1). Such percentage
shall be equal to the percentage which the amount of such excess is of the total amount to which all such agencies are so
entitled.

(3) All funds appropriated for making payments under this subchapter for any fiscal year shall be allocated in the manner
specified in paragraphs (1) and (2), unless an Act making appropriations for making payments under this title for any fiscal
year specifically makes funds available for payments on the basis of entitlements determined under clause (A) of paragraph
(1), apart from other payments under this subchapter, in which case, if the funds so appropriated are not sufficient to pay
in full the total amount to which all local educational agencies are so entitled, such funds shall be available for making
payments in the manner specified in paragraph (2) respecting allocations of any excess appropriations.

(4) In case the amount allocated to a section under paragraph (1) for a fiscal year exceeds the total to which all local educational
agencies are entitled under such section for such year or, in case additional funds become available for making payments under
this subchapter, the excess or such additional funds, as the case may be, shall be allocated among sections for which previous
allocations, are inadequate, on the same basis as is provided in paragraphs (1), (2), and (3) for the initial allocation.

(d) Adjustments for reduction in State aid.

(1) The amount which a local educational agency in any State is otherwise entitled to receive under section 237, 238, or 239
of this title for any fiscal year shall be reduced in the same proportion (if any) that the State has reduced for that year
its aggregate expenditures (from non-Federal sources) per pupil for current expenditure purposes for free public education
(as determined pursuant to regulations of the Commissioner) below the level of such expenditures per pupil in the second preceding
fiscal year. The Commissioner may waive or reduce this reduction whenever in his judgment exceptional circumstances exist
which would make its application inequitable and would defeat the purpose of this subchapter.

(2) No payments may be made during any fiscal year to any local educational agency in any State which has taken into consideration
payments under this subchapter in determining the eligibility of any local educational agency in that State for State aid
(as defined by regulation), or the amount of that aid, with respect to free public education during that year or the preceding
fiscal year, or which makes such aid available to local educational agencies in such a manner as to

§ 241. Education of children where local agencies cannot supply facilities.

(a) Necessary arrangements by Commissioner; standard of education.

In the case of children who reside on Federal property—

(1) if no tax revenues of the State or any political subdivision thereof may be expended for the free public education of
such children; or

(2) if it is the judgment of the Commissioner, after he has consulted with the appropriate State educational agency, that
no local educational agency is able to provide suitable free public education for such children,

the Commissioner shall make such arrangements (other than arrangements with respect to the acquisition of land, the erection
of facilities, interest, or debt service) as may be necessary to provide free public education for such children. Such arrangements
to provide free public education may also be made for children of members of the Armed Forces on active duty, if the schools
in which free public education is usually provided for such children are made unavailable to them as a result of official
action by State or local governmental authority and it is the judgment of the Commissioner, after he has consulted with the
appropriate State educational agency, that no local educational agency is able to provide suitable free public education for
such children. To the maximum extent practicable, the local educational agency, or the head of the Federal department or agency,
with which any arrangement is made under this section, shall take such action as may be necessary to ensure that the education
provided pursuant to such arrangement is comparable to free public education provided for children in comparable communities
in the State, or, in the case of education provided under this section outside the continental United States, Alaska, and
Hawaii, comparable to free public education provided for children in the District of Columbia. For the purpose of providing
such comparable education, personnel may be employed and the compensation, tenure, leave, hours of work, and other incidents
of the employment relationship may be fixed without regard to the Civil Service Act and rules and the following: (1) the Classification
Act of 1949, as amended; (2) the Annual and Sick Leave Act of 1951, as amended; (3) the Federal Employees' Pay Act of 1945,
as amended; (4) the Veterans' Preference Act of 1944, as amended; and (5) the Performance Rating Act of 1950, as amended.
In any case where education was being provided on January 1, 1955, or thereafter under an arrangement made under this subsection
for children residing on an Army, Navy (including the Marine Corps), or Air Force installation, it shall be presumed, for
the purposes of this subsection, that no local educational agency is able to provide suitable free public education for the
children residing on such installation, until the Commissioner and the Secretary of the military department concerned jointly
determine, after consultation with the appropriate State educational agency, that a local educational agency is able to do
so.

(b) Education of children in adjacent areas.

In any case in which the Commissioner makes such arrangements for the provision of free public education in facilities situated
on Federal property, he may also make arrangements for providing free public education in such facilities for children residing
in any area adjacent to such property with a parent who, during some portion of the fiscal year in which such education is
provided, was employed on such property, but only if the Commissioner determines after consultation with the appropriate State
educational agency (1) that the provision of such education is appropriate to carry out the purposes of this subchapter, (2)
that no local educational agency is able to provide suitable free public education for such children, and (3) in any case
where in the judgment of the Commissioner the need for the provision of such education will not be temporary in duration,
that the local educational agency of the school district in which such children reside, or the State educational agency, or
both, will make reasonable tuition payments to the Commissioner for the education of such children. Such payments may be made
either directly or through deductions from amounts to which the local educational agency is entitled under this subchapter,
or both, as may be agreed upon between such agency and the Commissioner. Any amounts paid to the Commissioner by a State or
local educational agency pursuant to this section shall be covered into the Treasury as miscellaneous receipts.

(d) Restrictions on making arrangements.

The Commissioner may make an arrangement under this section only with a local educational agency or with the head of a Federal
department or agency administering Federal property on which children reside who are to be provided education pursuant to
such arrangement or, in the case of children to whom the second sentence of subsection (a) of this section applies, with the
head of any Federal department or agency having jurisdiction over the parents of some or all of such children. Except where
the Commissioner makes arrangements pursuant to the second sentence of subsection (a) of this section, arrangements may be
made under this section only for the provision of education in facilities of a local educational agency or in facilities situated
on Federal property.

(e) Limit on payments.

To the maximum extent practicable, the Commissioner shall limit the total payments made pursuant to any such arrangement for
educating children within the continental United States, Alaska, or Hawaii, to an amount per pupil which will not exceed the
per pupil cost of free public education provided for children in comparable communities in the State. The Commissioner shall
limit the total payments made pursuant to any such arrangement for educating children outside the continental United States,
Alaska, or Hawaii, to an amount per pupil which will not exceed the amount he determines to be necessary to provide education
comparable to the free public education provided for children in the District of Columbia.

subdivision of the State may be expended for the free public education of children who reside on any Federal property within
the State, or if no tax revenues of a State are allocated for the free public education of such children, then the property
on which such children reside shall not be considered Federal property for the purposes of sections 238 and 239 of this title.
If a local educational agency refuses for any other reason to provide in any fiscal year free public education for children
who reside on Federal property which is within the school district of that agency or which, in the determination of the Commissioner,
would be within that school district if it were not Federal property, there shall be deducted from any amount to which the
local educational agency is otherwise entitled for that year under section 238 or 239 of this title an amount equal to (1)
the amount (if any) by which the cost to the Commissioner of providing free public education for that year for each such child
exceeds the local contribution rate of that agency for that year, multiplied by (2) the number of such children. (Sept. 30,
1950, ch. 1124, § 6, 64 Stat. 1107; Aug. 8, 1953, ch. 402, § 8, 67 Stat. 535; Aug. 1, 1955, ch. 446, 69 Stat. 433; Aug. 1,
1956, ch. 852, § 10, 70 Stat. 909; May 6, 1960, Pub. L. 86-149, title V, § 501, 74 Stat. 89; Apr 11, 1965, Pub. L. 89-10,
title I, §§ 2, 4(d)(2), 79 Stat. 27, 35; July 21, 1965, Pub. L. 89-77, § 2, 79 Stat. 243; Nov. 3, 1966, Pub. L. 89-750, title
II, § 204, 80 Stat. 1212; Apr. 13, 1970, Pub. L. 91-230, title IV, § 401(f)(1), 84 Stat. 173.)

Subchapter II.—Assistance to Local Educational Agencies for the Education of Children of Low-Income Families

§ 241 a. Congressional declaration of policy.

In recognition of the special educational needs of children of low-income families and the impact that concentrations of low-income
families have on the ability of local educational agencies to support adequate educational programs, the Congress hereby Declares
it to be the policy of the United States to provide financial assistance (as set forth in the following parts of this subchapter)
to local educational agencies serving areas with concentrations of children from low-income families to expand and improve
their educational programs by various means (including preschool programs) which contribute particularly to meeting the special
educational needs of educationally deprived children. (Sept. 30, 1950, ch. 1124, title I, § 101, formerly title II, § 201,
as added Apr. 11, 1965, Pub. L. 89-10, title I, § 2, 79 Stat. 27, renumbered and amended Jan. 2, 1968, Pub. L. 90-247, title
I, §§ 108(a)(2), 110, 81 Stat. 786, 787; Apr. 13, 1970, Pub. L. 91-230, title I, § 113(b)(2), 84 Stat. 126.)

§241c. Grants.

(a) Determination of grants; eligibility of State educational agency or other State or local public agency for grant.

(1)(A) There is hereby authorized to be appropriated for each fiscal year for the purposes of this paragraph an amount equal
to not more than 3 per centum of the amount appropriated for such year for payments to States under section 241g(a) of this
title (other than payments under such section to jurisdictions excluded from the term "State" by this subsection). The Commissioner
shall allot the amount appropriated pursuant to this paragraph among Puerto Rico, Guam, American Samoa, the Virgin Islands,
the Trust Territory of the Pacific Islands according to their respective need for such grants. In addition he shall allot
from such amount to the Secretary of the Interior the amount necessary to make payments pursuant to subparagraph (B) of this
paragraph, and for the fiscal year ending June 30, 1968, and each of the succeeding fiscal years ending prior to July 1, 1972,
the amount necessary to meet the special educational needs of educationally deprived children on reservations serviced by
elementary and secondary schools operated for Indian children by the Department of the Interior. The maximum grant which a
local educational agency in Puerto Rico, Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific
Islands shall be eligible to receive and the terms upon which payment shall be made to the Department of the Interior shall
be determined pursuant to each criteria as the Commissioner determines will best carry out the purposes of this part.

(B) The terms on which payment shall be made to the Department of the Interior shall include provision for payments by the
Secretary of the Interior to local educational agencies with respect to out-of-State Indian children in the elementary or
secondary schools of such agencies under special contracts with that Department. The amount of any such payment may not exceed,
for each such child, one-half the average per pupil expenditure in the State in which the agency is located.

(2) In any case in which the Commissioner determines that satisfactory data for that purpose are available, the maximum grant
which a local educational agency in a State shall be eligible to receive under this part for any fiscal year shall be (except
as provided in paragraph (3)) an amount equal to the Federal percentage (established pursuant to subsection (c) of this section)
of the average per pupil expenditure in that State or, if greater, in the United States, multiplied by the number of children
in the school district of such agency who are aged five to seventeen, inclusive, and are (A) in families having an annual
income of less than the low-income factor (established pursuant to subsection (c) of this section), (B) in families receiving
an annual income in excess of the low-income factor (established pursuant to subsection (c) of this section) from payments
under the program of aid to families with dependent children under a State plan approved under title IV of the Social Security
Act, or (C) living in institutions for neglected or delinquent children (other than such institutions operated by the United
States) but not counted pursuant to paragraph (7) of this subsection for the purpose of a grant to a State agency, or being
supported in foster homes with public funds. In any other case, the maximum grant for any local

educational agency in a State shall be determined on the basis of the aggregate maximum amount of such grants for all such
agencies in the county or counties in which the school district of the particular agency is located, which aggregate maximum
amount shall be equal to the Federal percentage of such per pupil expenditure multiplied by the number of children of such
ages in such county or counties who are described in clause (A), (B), or (C) of the previous sentence, and shall be allocated
among those agencies upon such equitable basis as may be determined by the State educational agency in accordance with basic
criteria prescribed by the Commissioner. Notwithstanding the foregoing provisions of this paragraph, upon determination by
the State educational agency that a local educational agency in the State is unable or unwilling to provide for the special
educational needs of children, described in clause (C) of the first sentence of this paragraph, who are living in institutions
for neglected or delinquent children, the State educational agency shall, if it assumes responsibility for the special educational
needs of such children, be eligible to receive the portion of the allocation to such local educational agency which is attributable
to such neglected or delinquent children, but if the State educational agency does not assume such responsibility, any other
State or local public agency, as determined by regulations established by the Commissioner, which does assume such responsibility
shall be eligible to receive such portion of the allocation.

(3)(A) If the maximum amount of the grant determined pursuant to paragraph (1) or (2) for any local educational agency for
the fiscal year ending June 30, 1967, is greater than 50 per centum of the sum budgeted by that agency for current expenditures
for that year (as determined pursuant to regulations of the Commissioner), such maximum amount shall be reduced to 50 per
centum of such budgeted sum.

(B) In the case of local educational agencies which serve in whole or in part the same geographical area, and in the case
of a local educational agency which provides free public education for a substantial number of children who reside in the
school district of another local educational agency, the State educational agency may allocate the amount of the maximum grants
for those agencies among them in such manner as it determines will best carry out the purposes of this part.

(4) For purposes of this subsection, except paragraphs (5) and (7), the term "State" does not include Puerto Rico, Guam, American
Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands.

(5) In the case of a State agency which is directly responsible for providing free public education for handicapped children
(including mentally retarded, hard of hearing, deaf, speech impaired, visually handicapped, seriously emotionally disturbed,
crippled or other health impaired children who by reason thereof require special education), the maximum grant which that
agency shall be eligible to receive under this part for any fiscal year shall be an amount equal to the Federal percentage
of the average per pupil expenditure in the State or, if greater, in the United States, multiplied by the number of such children
in average daily attendance, as determined by the Commissioner, at schools for handicapped children operated or supported
by the State agency, including schools providing special education for handicapped children under contract or other arrangement
with such State agency, in the most recent fiscal year for which satisfactory data are available. Such State agency shall
use payments under this part only for programs and projects (including the acquisition of equipment and where necessary the
construction of school facilities) which are designed to meet the special educational needs of such children.

(6) A State educational agency which has submitted and had approved an application under section 241e(c) of this title for
any fiscal year shall be entitled to receive a grant for that year under this part, based on the number of migratory children
of migratory agriculture workers to be served, for establishing or improving programs for such children. The maximum total
of grants which may be made available for use in any State or any fiscal year shall be an amount equal to the Federal percentage
of the average per pupil expenditure in that State or, if greater, in the United States multiplied by (A) the estimated number
of such migratory children aged five to seventeen, inclusive, who reside in the State full time, and (B) the full-time equivalent
of the estimated number of such migratory children aged five to seventeen, inclusive, who reside in the State part time, as
determined by the Commissioner in accordance with regulations, except that if, in the case of any State, such amount exceeds
the amount required under the preceding sentence and under section 241e(c)(2) of this title, the Commissioner shall allocate
such excess, to the extent necessary, to other States whose maximum total of grants under this sentence would otherwise be
insufficient for all such children to be served in such other States.

(7) In the case of a State agency which is directly responsible for providing free public education for children in institutions
for neglected or delinquent children, the maximum grant which that agency shall be eligible to receive under this part for
any fiscal year shall be an amount equal to the Federal percentage of the average per pupil expenditure in that State or,
if greater, in the United States multiplied by the number of such children in average daily attendance, as determined by the
Commissioner, at schools for such children operated or supported by that State agency, including schools providing education
for such children under contract or other arrangement with such agency, in the most recent fiscal year for which satisfactory
data are available. Such State agency shall use payments under this part only for programs and projects (including the acquisition
of equipment and where necessary the construction of school facilities) which are designed to meet the special educational
needs of such children.

(b) Eligibility of local educational agency for grant.

A local educational agency shall be eligible for a grant for a fiscal year under this part only if it meets the following
requirements with respect to the number of children aged five to seventeen, inclusive, described in clauses (A), (B), and
(C) of the first sentence of paragraph (2) of subsection (a) of this section:

(1) In any case (except as provided in paragraph (3)) in which the Commissioner determines that satisfactory data for the
purpose of this subsection as to the number of such chil-

dren are available on a school district basis, the number of such children in the school district of such local educational
agency shall be at least ten.

(2) In any other case, except as provided in paragraph (3), the number of such children in the county which includes such
local educational agency's school district shall be at least ten.

(3) In any case in which a county includes a part of the school district of the local educational agency concerned and the
Commissioner has not determined that satisfactory data for the purpose of this subsection are available on a school district
basis for all the local educational agencies for all the counties into which the school district of the local educational
agency concerned extends, the eligibility requirement with respect to the number of such children for such local educational
agency shall be determined in accordance with regulations prescribed by the Commissioner for the purposes of this subsection.

(c) Federal percentage; Low-income factor.

For the purposes of this section, the "Federal percentage" shall be 50 per centum and the "low-income factor" shall be $2,000
for the fiscal year ending June 30, 1966, and the fiscal year ending June 30, 1967. Except as otherwise provided in section
241h of this title, for the fiscal years ending June 30, 1968, and for the four succeeding fiscal years they shall be 50 per
centum and $3,000, respectively, and for the fiscal year ending June 30, 1973 they shall be 50 per centum and $4,000, respectively.

(d) Compilation of data; children living in institutions for delinquent children.

For the purposes of this section, the Commissioner shall determine the number of children aged five to seventeen, inclusive,
of families having an annual income of less than the low-income factor (as established pursuant to subsection (c) of this
section) on the basis of the most recent satisfactory data available from the Department of Commerce. At any time such data
for a county are available in the Department of Commerce, such data shall be used in making calculations under this section.
The Secretary of Health, Education, and Welfare shall determine the number of children of such ages from families receiving
an annual income in excess of the low-income factor from payments under the program of aid to families with dependent children
under a State plan approved under title IV of the Social Security Act, and the number of children of such ages living in institutions
for neglected or delinquent children, or being supported in foster homes with public funds, on the basis of the case load
data for the month of January of the preceding fiscal year or, to the extent that such data are not available to him before
April 1 of the calendar year in which the Secretary's determination is made, then on the basis of the most recent reliable
data available to him at the time of such determination. When requested by the Commissioner, the Secretary of Commerce shall
make a special estimate of the number of children of such ages who are from families having an annual income less than the
low income factor (established pursuant to subsection (c) of this section) in each county or school district, and the Commissioner
is authorized to pay (either in advance or by way of reimbursement) the Secretary of Commerce the cost of making this special
estimate. The Secretary of Commerce shall give consideration to any request of the chief executive of a State for the collection
of additional census information. For purposes of this section, the Secretary shall consider all children who are in correctional
institutions to be living in institutions for delinquent children.

(e) Average per pupil expenditure.

For purposes of this section, the "average per pupil expenditure" in a State, or in the United States, shall be the aggregate
current expenditures, during the second fiscal year preceding the fiscal year for which the computation is made (or, if satisfactory
data for that year are not available at the time of computation, then during the earliest preceding fiscal year for which
satisfactory data are available), of all local educational agencies as defined in section 244(6)(A) of this title in the State,
or in the United States (which for the purposes of this subsection means the fifty States and the District of Columbia), as
the case may be, plus any direct current expenditures by the State for operation of such agencies (without regard to the sources
of funds from which either of such expenditures are made), divided by the aggregate number of children in average daily attendance
to whom such agencies provided free public education during such preceding year. (Sept. 30, 1950, ch. 1124, title I, § 103,
formerly title II, § 203, as added Apr. 11, 1965, Pub. L. 89-10, title I, § 2, 79 Stat. 28, and amended July 21, 1965, Pub.
L. 89-77, § 3, 79 Stat. 243; Nov. 1, 1965, Pub. L. 89-313, § 6(a), 79 Stat. 1161; Nov. 3, 1966, Pub. L. 89-750, title I, §§
102, 103(a), 104, 105(a)-(b)(2), (c), 106, 107, 108(b)(1), 113(b), 117(a)(2), (3), 80 Stat. 1191-1195, 1197, 1198, renumbered
and amended Jan. 2, 1968, Pub. L. 90-247, title I, §§ 101, 103(a), 104(a), (b), 105, 107(a), 108(a)(2), 110, 81 Stat. 783-787;
Oct. 16, 1968, Pub. L. 90-576, title III, § 307, 82 Stat. 1097; Apr. 13, 1970, Pub. L. 91-230, title I, §§ 101(b), 103, 104(a),
105(a), (b), 106, 107, 113(a), 84 Stat. 121-124, 126.)

Subchapter III.—General

§ 244. Definitions.

For the purposes of this chapter—

(1) The term "Federal property" means real property which is owned by the United States or is leased by the United States,
and which is not subject to taxation by any State or any political subdivision of a State or by the District of Columbia.
Such term includes (A) except for purposes of section 241 of this title, real property held in trust by the United States
for individual Indians or Indian tribes, and real property held by individual Indians or Indian tribes which is subject to
restrictions on alienation imposed by the United States, (B) for one year beyond the end of the fiscal year in which occurred
the sale or transfer thereof by the United States, any property considered prior to such sale or transfer to be Federal property
for the purposes of this chapter, (C) any low-rent housing (whether or not owned by the United States) which is part of a
low-rent housing project assisted under the United States Housing Act of 1937, section 516 of the Housing Act of 1949, or
Part B of title III of the Economic Opportunity Act of 1964, and (D) any school which is providing flight training to members
of the Air Force under contractual arrangements with the Department of the Air Force at an airport which is owned by a State,
or a political subdivision of a State. Such term also includes

any interest in Federal property (as defined in the foregoing provisions of this paragraph) under an easement, lease, license,
permit, or other arrangement, as well as any improvements of any nature (other than pipelines or utility lines on such property
even though such interests or improvements are subject to taxation by a State or political subdivision of a State or by the
District of Columbia. Notwithstanding the foregoing provisions of this paragraph, such term does not include any real property
under the jurisdiction of the Post Office Department and used primarily for the provision of postal services.

(2) The term "child", except as used in sub-chapter II of this chapter, means any child who is within the age limits for which
the applicable State provides free public education.

(3) The term "parent" includes a legal guardian or other person standing in loco parentis.

(4) The term "free public education" means education which is provided at public expense, under public supervision and direction,
and without tuition charge, and which is provided as elementary or secondary school education in the applicable State, except
that for the purposes of subchapter II of this chapter such term does not include any education provided beyond grade 12.

(5) The term "current expenditures" means expenditures for free public education, including expenditures for administration,
instruction, attendance and health services, pupil transportation services, operation and maintenance of plant, fixed charges,
and net expenditures to cover deficits for food services and student body activities, but not including expenditures for community
services, capital outlay, and debt service, or any expenditures made from funds granted under subchapter II of this chapter
or sections 821 to 827 or 841 to 848 of this title.

(6)(A) For purposes of subchapter I of this chapter, the term "local educational agency" means a board of education or other
legally constituted local school authority having administrative control and direction of free public education in a county,
township, independent, or other school district located within a State. Such term includes any State agency which directly
operates and maintains facilities for providing free public education.

(B) For purposes of subchapter II of this chapter, the term "local educational agency" means a public board of education or
other public authority legally constituted within a State for either administrative control or direction of, or to perform
a service function for, public elementary or secondary schools in a city, county, township, school district, or other political
subdivision of a State, or such combination of school districts or counties as are recognized in a State as an administrative
agency for its public elementary or secondary schools. Such term includes any other public institution or agency having administrative
control and direction of a public elementary or secondary school, and it also includes (except for purposes of sections 241c(a)(2),
241c(b), and 241e(a)(1) of this title) any State agency which is directly responsible for providing free public education
for handicapped children (including mentally retarded, hard of hearing, deaf, speech impaired, visually handicapped, seriously
emotionally disturbed, crippled, or other health impaired children who by reason thereof require special education) or for
children in institutions for neglected or delinquent children.

(7) The term "State educational agency" means the officer or agency primarily responsible for the State supervision of public
elementary and secondary schools.

(8) The term "State" means a State, Puerto Rico, Wake Island, Guam, the District of Columbia, American Samoa, or the Virgin
Islands and for purposes of subchapter II of this chapter, such term includes the Trust Territory of the Pacific Islands.

(9) The terms "Commissioner of Education" and "Commissioner" means1 the United States Commissioner of Education.

(10) Average daily attendance shall be determined in accordance with State law, except that (A) the average daily attendance
of children with respect to whom payment is to be made under section 238 or 239 of this title shall be determined in accordance
with regulations of the Commissioner, and (B) notwithstanding any other provision of this chapter, where the local educational
agency of the school district in which any child resides makes or contracts to make a tuition payment for the free public
education of such child in a school situated in another school district, for purposes of this chapter the attendance of such
child at such school shall be held and considered (i) to be attendance at a school of the local educational agency so making
or contracting to make such tuition payment, and (ii) not to be attendance at a school of the local educational agency receiving
such tuition payment or entitled to receive such payment under the contract.

(11) The term "county" means those divisions of a State utilized by the Secretary of Commerce in compiling and reporting data
regarding counties.

(12) The term "construction" includes the preparation of drawings and specifications for school facilities; erecting, building,
acquiring, altering, remodeling, improving, or extending school facilities; and the inspection and supervision of the construction
of school facilities.

(13) The term "school facilities" means classrooms and related facilities (including initial equipment) for free public education
and interests in land (including site, grading, and improvements) on which such facilities are constructed, except that such
term does not include those gymnasiums and similar facilities intended primarily for exhibitions for which admission is to
be charged to the general public.

(14) The term "equipment" includes machinery, utilities, and built-in equipment and any necessary enclosures or structures
to house them, and includes all other items necessary for the functioning of a particular facility as a facility for the provision
of educational services, including items such as instructional equipment and necessary furniture, printed, published, and
audio-visual instructional materials, and books, periodicals, documents, and other related materials.

(15) For the purpose of subchapter II of this chapter the term "elementary school" means a day or residential school which
provides elementary education, as determined under State law, and the term "secondary school" means a day or residential school
which provides second-

§ 244a. School facilities for children of Government employees and other residents in Indian reservations, national parks,
and national monuments.

In order to facilitate the providing of educational opportunities for children of Government employees and other residents
in Indian reservations, the national parks and national monuments the Secretary of the Interior is authorized in his discretion
to make available for elementary school purposes therein, without charge, space in Government-owned buildings, when such space
may be available for such purposes without detriment to the official business of such Indian reservation, national parks and
national monuments. (July 16, 1940, ch. 629, 54 Stat. 761.)